SAT20 Protocol Stack

SAT20 is not a single protocol. It is a protocol, indexing, channel, and execution stack built around Bitcoin-native assets. Its goal is to let BTC, Ordinals, Runes, BRC20, ORDX, and other assets enter a network that is better suited for circulation, contracts, and AI Agent automation while preserving user control.

Foundation Layers

Layer	Role
Indexer	Parses Bitcoin L1 and SatoshiNet L2 transactions into queryable and auditable asset facts
STP	Uses RSMC channels, commitment transactions, revocation, and punishment to let assets enter, circulate, and exit SatoshiNet
SatoshiNet	Carries SatoshiNet transactions, enUTXO, channel contracts, smart contracts, and GAS economics
Channel Contracts	Manage public asset pools and coordinate user-triggered L1/L2 cross-layer actions
Asset Issuance Protocols	BTC, Ordinals, Runes, BRC20, ORDX, and other asset protocols unified by indexers

The relationship can be summarized as:

1. BTC, Ordinals, Runes, BRC20, ORDX, and other protocols define or carry assets.

2. Indexers parse these assets from on-chain transactions into unified asset facts.

3. STP brings assets into a channel jointly controlled by the user and a Core Node, then creates the corresponding SatoshiNet asset state.

4. Channel contracts act as public facilities that coordinate user-triggered L1/L2 actions and public pool state.

5. SatoshiNet lets assets circulate quickly on L2, enter smart contracts, pay GAS, and return to Bitcoin L1 through STP when needed.

Design Principles

1. Assets originate from Bitcoin L1. SatoshiNet does not create balances unrelated to Bitcoin L1.

2. Users retain exit capability. If a Core Node fails or behaves maliciously, users can rely on commitment transactions, punishment transactions, and force-close paths.

3. Asset facts are auditable. Wallets, exchanges, explorers, and AI Agents can trace L1/L2 evidence for each asset.

4. Protocols are language-independent. STP clients, indexer clients, and contract tools can be implemented in any language.

5. Agent-verifiable results. Protocol results include txid, UTXO, commit height, ascend/descend, punish coverage, and other evidence, not only balance changes.

Reading Order

For protocol implementers:

1. Indexer: Bitcoin Asset Fact Layer

2. STP Technical Whitepaper

3. SatoshiNet Protocol Overview

4. Channel Contracts

5. Asset Issuance Protocols

6. Smart Contract Protocol

Wallet, exchange, or AI Agent developers should start with the Developer Center.